Interest rates on 4-year treasury securities are currently, Ask an Expert

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Interest rates on 4-year Treasury securities are currently 5.55%, while 6-year Treasury securities yield 7.8%.

If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now?

Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92767192

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